"The special committee and the entire board appreciate the urgency of the situation, and the special committee will therefore conduct the review in an independent, thorough, and expeditious manner," Yahoo said in a release. "The board intends to make the appropriate disclosures to shareholders promptly, upon completion of the review."

Last week, activist investor Daniel Loeb dropped what turned out to be a PR bombshell, when he publicized the discovery that Thompson's resume listed an undergraduate computer-science degree he had never received. Loeb, who is prepping a proxy fight aimed at placing a slate of new directors (himself included) on Yahoo's board, now wants Yahoo to turn over all records related to Thompson and the search process.

We've asked Yahoo for comment and will update the post when we get one. A representative of Third Point, Loeb's firm, said the company had no comment on Yahoo's announcement.

Alfred Amoroso, who joined Yahoo's board in February, will head the special committee, along with John Hayes and Thomas McInerney, two directors who joined the board in April. Terry Bird of the law firm Bird, Marella, Boxer, Wolpert, Nessim, Drooks and Lincenberg in Los Angeles has been retained as its independent counsel.